Siegfried Holding AG's (VTX:SFZN) CEO Compensation Looks Acceptable To Us And Here's Why

Key Insights

• Siegfried Holding will host its Annual General Meeting on 18th of April
• Total pay for CEO Wolfgang Wienand includes CHF800.0k salary
• The total compensation is similar to the average for the industry
• Over the past three years, Siegfried Holding's EPS grew by 21% and over the past three years, the total shareholder return was 15%

Under the guidance of CEO Wolfgang Wienand, Siegfried Holding AG (VTX:SFZN) has performed reasonably well recently. This is something shareholders will keep in mind as they cast their votes on company resolutions such as executive remuneration in the upcoming AGM on 18th of April. Here is our take on why we think the CEO compensation looks appropriate.

Check out our latest analysis for Siegfried Holding

Comparing Siegfried Holding AG's CEO Compensation With The Industry

At the time of writing, our data shows that Siegfried Holding AG has a market capitalization of CHF3.8b, and reported total annual CEO compensation of CHF3.0m for the year to December 2023. We note that's a decrease of 9.6% compared to last year. While we always look at total compensation first, our analysis shows that the salary component is less, at CHF800k.

On comparing similar companies from the Swiss Life Sciences industry with market caps ranging from CHF1.8b to CHF5.8b, we found that the median CEO total compensation was CHF2.6m. From this we gather that Wolfgang Wienand is paid around the median for CEOs in the industry. What's more, Wolfgang Wienand holds CHF22m worth of shares in the company in their own name, indicating that they have a lot of skin in the game.

Component	2023	2022	Proportion (2023)
Salary	CHF800k	CHF800k	27%
Other	CHF2.2m	CHF2.5m	73%
Total Compensation	CHF3.0m	CHF3.3m	100%

Speaking on an industry level, nearly 35% of total compensation represents salary, while the remainder of 65% is other remuneration. Siegfried Holding sets aside a smaller share of compensation for salary, in comparison to the overall industry. If non-salary compensation dominates total pay, it's an indicator that the executive's salary is tied to company performance.

A Look at Siegfried Holding AG's Growth Numbers

Siegfried Holding AG has seen its earnings per share (EPS) increase by 21% a year over the past three years. In the last year, its revenue is up 3.4%.

Shareholders would be glad to know that the company has improved itself over the last few years. It's good to see a bit of revenue growth, as this suggests the business is able to grow sustainably. Moving away from current form for a second, it could be important to check this free visual depiction of what analysts expect for the future.

Has Siegfried Holding AG Been A Good Investment?

With a total shareholder return of 15% over three years, Siegfried Holding AG shareholders would, in general, be reasonably content. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Seeing that the company has put up a decent performance, only a few shareholders, if any at all, might have questions about the CEO pay in the upcoming AGM. In saying that, any proposed increase to CEO compensation will still be assessed on how reasonable it is based on performance and industry benchmarks.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Siegfried Holding that you should be aware of before investing.

Important note: Siegfried Holding is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.